TCS Faces Discrimination Allegations in US: A Deep Dive into the Lawsuit

In a significant turn of events, Tata Group’s TCS has reportedly received partial relief in a racial discrimination lawsuit in a New Jersey court, US. The lawsuit, which has been a topic of discussion for quite some time, was initiated by a former employee, Shawn Katz, who accused the IT behemoth of racial discrimination against non-South Asian and non-Indian applicants and employees.

Backdrop of the Lawsuit

Shawn Katz, who had been associated with TCS for a commendable nine years, was let go, leading him to file the lawsuit in the United States District Court for the District of New Jersey on 7 December of the previous year.

• Katz’s allegations were grave, claiming that TCS systematically discriminates against non-South Asian and non-Indian individuals in various aspects, including hiring, staffing, benching, termination, and promotion decisions.
• He further alleged that this discriminatory policy is a top-down approach within the company.

On 3 March of this year, Katz expanded his complaint, representing not just himself but also a class of “non-South Asians and non-Indians” who, despite meeting the criteria, were overlooked for promotions or were involuntarily terminated.

What the Court Decided

Justice Brian R Martinotti, on 10 August, provided a verdict that has trimmed down the lawsuit, dismissing one of the three claims presented by Katz.

• The court refrained from proceeding with Katz’s disparate impact claim under Title VII, citing his inability to establish a ‘prima facie’ case for it.
• Title VII, for context, is a significant legal provision that prohibits both intentional and unintentional discrimination, even if they disproportionately affect minorities.

However, the court did acknowledge Katz’s allegations of disparate treatment, which implies intentional discrimination. The order stated that TCS’s policies, which Katz alleges favour South Asians and Indians, are not neutral.

It’s worth noting that this isn’t TCS’s first tryst with such allegations. Back in 2015, the company faced a similar lawsuit but emerged victorious in 2018 when a California district court ruled in its favour.

What’s Next for TCS?

While the recent verdict has provided some relief to TCS, the journey is far from over.

• The court has permitted the amended complaint to proceed.
• It remains to be seen how this lawsuit will unfold and what implications it might have for one of India’s IT giants.

Have you ever faced workplace discrimination?

Share your experiences and thoughts on this ongoing lawsuit. Let’s foster a community where everyone’s voice is heard.